Nigeria’s oil needs technology
TECHNOLOGY MARKED BY cost-savings initiatives, flexibility to scale projects, promotion of innovation and gas resource development are major value drivers for Nigeria’s oil market which has been particularly worst-hit by the Covid-19...
TECHNOLOGY MARKED BY costsavings initiatives, flexibility to scale projects, promotion of innovation and gas resource development are major value drivers for Nigeria’s oil market which has been particularly worst-hit by the Covid-19 pandemic.
Through this Nigeria would stay cost competitive in the oil industry, said Roger Brown, chief executive officer of Seplat Plc.
With the International Energy Agency (IEA) setting out a road map to what it believes is required to achieve net carbon zero 2050, coupled with oil prices rising on COVID-19 pandemic recovery, traders betting on sustained revival in oil demand and the activities of OPEC/OPEC+, Brown noted that the end-consumers, suppliers of energy, governments/regulators and providers of capital could be said to be in control of market outcomes.
Given the current market realities, he said Seplat, a leading private sector player in the sector, has identified cost savings initiatives, flexibility to scale projects, promotion of innovation and gas resource development as major value drivers for all its stakeholders.
Brown, who spoke on “Oil Market Forum: Who is in Control?” at the 2021 Nigerian International Petroleum Summit (NIPS) in Abuja, therefore urged operators and other stakeholders to heighten their priority to increase operational efficiencies and reduce costs, ensure the implementation of high calibre remote working technologies, and adopt new systems, new habits and new patterns that have emerged and impacting work processes.
The Seplat CEO added: “There is the need for pursuit of strategic new opportunities and streamlining operations. Portfolios have been reshaped and capital reallocated to the highest-return opportunities, that is, those best aligned with future value creation and sources of distinctiveness.
“Environment, Social and Governance (ESG) principles are now key drivers in how companies plan for long term growth; thus, the responsibility of companies to undertake gap analyses and ensure that sustainability thinking is embedded across the organization is very critical at this time.”
On oil and gas engagements, he urged Nigeria to reduce operational costs, aim to be lowest quartile producer, drive technological development using Artificial Intelligence; ensure lower costs to market, promote free market pricing for domestic gas with the right fiscal or other incentives, and balance LNG development with Domestic Gas - developing both.
Nigeria produces its oil at over $25 against Saudi Arabia’s $8.
On electricity, Brown advised that Nigeria should move away from off-grid diesel generation, and improve the electricity supply chain and develop on-grid gas as a catalyst for on-grid renewable energy.
For biomass, he called for the development of the LPG and CNG markets, and reduction of reliance on biomass, that is, arresting deforestation. He also advocated for a balance of Environmental and Social development whilst delivering the 17 Sustainable Development Goals (SDG).